Trailing vs static drawdown

Guide, 4 min read, updated 2026-10-05

Static drawdown

With a static drawdown, your minimum balance is set once: starting balance minus the max drawdown. It never moves. On a 50K with a $2,000 drawdown, the floor is $48,000 for the life of the account, whatever your profit.

It is the simplest rule to trade with. A profit cushion stays a cushion. At Demos, Classic uses it, together with the consistency rule.

Trailing drawdown

With a trailing drawdown, your minimum balance follows your highest closed balance, minus the max drawdown. On a 50K: it starts at $48,000. Close a day at $51,000 and the floor moves to $49,000. It only moves up.

It stops at the starting balance. Once your highest closed balance reaches $52,000, the floor locks at $50,000 and never moves again. From that point, trailing and static behave the same. At Demos, Pro uses it, with no consistency rule.

Closed balance, not intraday

The floor follows your closed balance, not the high point of an open trade. An open position that runs in your favour and comes back does not move the floor. What counts is where you close.

Which one fits you

Static suits traders who hold through pullbacks and use wider stops: the cushion they build stays available. Trailing suits traders who bank gains day after day: the floor follows them up and locks early, and they trade without a consistency rule.

Both models have the same target, the same contracts and the same funded account. Compare them on the Accounts page and read the full rules on the Rules & FAQ page.